What does life insurance cover?
Summary: Life insurance pays out a lump sum of cash upon your death, so your loved ones can carry on their lives, without added financial burden. The lump sum can be used however your loved ones see fit.
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What does life insurance cover?
Life insurance pays out a lump sum of cash upon your death, so your loved ones can carry on their lives, without added financial burden. The lump sum can be used however your loved ones see fit this could include:
Protecting your home
Paying for your home is often the biggest debt in your life. Life insurance could help to pay off your mortgage or cover your rent, to help your family keep their home if you died.
Funeral costs
Upon your death, your family will be left with unexpected expenses such as funeral costs, life insurance could cover these costs and provide your loved one’s peace of mind.
Debts
If you have any debt or joint loans that your family would need to cover if you died, they could be paid off with your life insurance.
Bills and essentials
If your family would struggle to pay the bills without your income, life insurance could protect your loved ones and could help cover ensure the essential expenses.
These are just a few of the things you might want to cover. Your chosen beneficiaries will receive a cash lump sum payout, so they’re not tied down to specific payments, it’s completely up to them how they spend it. You can choose your beneficiaries if you stipulate it within your will, or your policy is placed in a trust.
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